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Vallejo City Unified Takes Back Local Control of Schools After 21 Years

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Both Vallejo City and Oakland Unified School Districts regained local control Monday after more than 20 years of state oversight, local officials said.  (Getty Images)

Vallejo City Unified School District has full local control of its schools for the first time in more than two decades, after it announced this week that state oversight of the district has officially ended.

“This is not just an administrative shift — it’s a full-circle moment for a district that has worked tirelessly to rebuild credibility, restore fiscal solvency, and center student success,” Superintendent Rubén Aurelio said in a statement. “Our entire community — educators, families, partners, and students — has contributed to this recovery, and we are ready to lead with discipline and vision.”

Earlier this year, Solano County Superintendent Lisette Estrella-Henderson formally recommended that the district exit state receivership after what the district said was years of difficult financial planning, stable leadership and steps toward financial recovery. The district was joined by nearby Oakland Unified School District, which also exited state receivership on Monday after 22 years of state control, the Mercury News reported.

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The state took over Vallejo schools in 2004 after the threat of financial ruin forced the district to take out a $60 million emergency loan from the state to stay solvent. For the last 20 years, a state-appointed administrator has been responsible for overseeing the school district’s financial and managerial operations, although partial control was eventually returned to the district’s Board of Education.

Declining enrollment, depleted cash reserves and overspending brought the district to the brink of bankruptcy, Aurelio said. As the financial crisis mounted, district officials such as the superintendent were unable to make unilateral decisions without consulting with entities such as the teachers’ union, he added.

On March 29, 2005, former Solano County Superintendent of Schools Dee Alarcon listened in Fairfield, Calif., as auditors delivered their findings to the Solano Office of Education in regards to troubled Vallejo City Unified School District, which “willfully overstated student enrollment, took out loans to cover debts and shuffled money between accounts to hide millions of dollars in losses,” leading up to the $60 million bailout. (Michael Macor / San Francisco Chronicle (Photo By Michael Macor/The San Francisco Chronicle via Getty Images)

After the state took over, the administrator who was put in place was able to make “sweeping changes” without needing to bargain and negotiate, leading to more aggressive budget cuts and two school closures.

In addition to paying off the loan, the school district had to demonstrate to the Solano County Office of Education that an accountability plan was in place to prevent future financial distress, according to district officials.

As the district exits receivership, monthly budget meetings as well as partnerships with the California Collaborative for Educational Excellence, a state-run advisory group, and the county’s education office are set to continue.

Moving forward into the next fiscal year, Aurelio said the district will need to stay mindful of its finances. While nothing is certain, there may need to be more school closures and possible layoffs in order to address the district’s ongoing structural deficits.

He said the district will be transparent about any tough choices that need to be made, and that community members are welcome to reach out with any concerns as they continue to reorganize and assess the financial situation for the next school year.

“The safety net is gone as we move forward,” Aurelio told KQED. “Every decision that is made now is made wholeheartedly by the board, and they must stand on that decision.”

“Their fiduciary responsibilities are obviously number one and of course, making sure our students are getting what they need,” he continued. “They have not shied away from things like closing schools or reducing the budget, and those are sometimes painful decisions … They’re doing what’s necessary.”

KQED’s Riley Palmer contributed to this report.

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